U.S. INDUSTRY GROUP RECOMMENDS RESTRUCTURE OF MPF

U.S. INDUSTRY GROUP RECOMMENDS RESTRUCTURE OF MPF    Some industry officials recommend that if the U.S. Merchandise Processing Fee is not going to be eliminated, then the revenue from the fee must be restructured.
   MPF is set to expire in 2003, but it’s unlikely that the government will allow it to disappear.
   MPF ranges from $25 to $485 per entry. They are accessed on imports valued at more than $2,000.
   MPF generates about $900 million a year for the U.S. government. This revenue is placed in general funds.
   The Treasury Advisory Committee on Commercial Operations of the U.S. Customs Service said it would support MPF if the funding is dedicated to Customs operations and the agency’s future system, the Automated Commercial Environment.
   The group also proposed that MPF be simplified into a flat fee for formal import entries and a lower flat fee for informal and certain other entries. The group also wants to increase the informal entry rate from $2,000 to $2,500. The fees could be adjusted according to funding surpluses or shortages, the group said.
   The group will discuss its plans with the House Ways and Means Committee and Senate Finance Committee in February and with the Office of Finance Budget Division in March. It will also seek input from the industry to build consensus.